LASCO Newsletter DEBIT CARD FRAUD

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					                                                   LASCO
                                                  Newsletter
                                         January 2009 – Volume 5, Issue1

                                       LASCO POSITIONING STATEMENT
Lasco provides Information Technology (IT) solutions for small to mid-size financial institutions, businesses and
organizations across the Upper Midwest. Lasco also serves as a data processing center for financial institutions
providing numerous bank services to assist institutions with their day-to-day operations. For 42 years, Lasco has
worked in an honest, ethical manner with its commitment being to assist its clients in achieving success. Lasco’s client
relationships are built on this commitment and trust with each of its clients.

DEBIT CARD FRAUD                                             Layer 2: Realtime Decisioning (the process of
Debit Card Fraud is real and                                 utilizing a unique set of rules for declining highly
becoming more and more of a threat                           suspicious authorizations
to banks as well as individuals.                               -   One or more rules
                                                               -   General or enhanced
The Fraud Landscape:*                                          -   Built within the authorization process
   Fraud is here to stay                                       -   Designed to meet your current fraud trends
   Criminals are organized worldwide                                      o Trends affecting institutions in your
       Continue to identify and exploit                                        geographic area
       vulnerabilities in the payment system                              o Industry fraud trends
   Reputation and brand risk                                 Realtime Variables
       Cardholder perception                                 A combination of numerous elements can be
            Not always perceived as an “industry”            used when defining realtime rules:
            issue                                              -   Geographic location of merchant (country or
            Cardholder may feel the bank (issuer)                  state)
            has a problem                                      -   Merchant Category Code
                                                               -   Merchant Name
   Issuers have liability for fraud losses as                  -   Merchant ID
   chargeback rights are limited and zero                      -   $Amount
   liability for cardholders                                   -   Visa Advanced Auth Data (score, condition
   Debit and ATM fraud rising faster than credit                   code, CER ID)
   Non-US fraud                                                -   PIN field (pin vs. pinless)
                                                               -   Realtime Score
Metavante Fraud Management Systems:*                           -   Entry mode (card present vs. card not present)
Layered security controls such as the following                -   eCommerce Flag
provide the best defense against fraud:                      -     NYCE RMS Score
                                                            Layer 3: Transaction Monitoring with PRM
                                                            (Proactive Risk Manager)
                                                            Metavante Fraud Analysts monitor 24x7x365
                                                             -     Near realtime monitoring for debit, ATM cards,
                                                                   prepaid and healthcare
                                                                          o Monitor activity on over 30 million
                                                                              cards
                                                             -     Analysts see activity across multiple portfolios
Layer 1: Authorization Strategies                                  and clients
-   Daily spending limits                                                 o Ability to react quickly to new fraud
-   Velocity checks                                                           trends
-   Expiration date matching                                 -     Neural network scores plus rules-based
-   PIN validation                                                 strategies
-   Address Verification Service (AVS)                       -     Flexible system to enable quick response to
-   CVV1/CVV2
                                                                   fraud threats
-   Dynamic CVV (Contactless cards)
-   Verified by Visa                                         -     Parameters can be defined on multiple data
                                                                   elements

                                                         -1-
        January 2009                                                               Lasco Newsletter

For preventing as well as dealing with             Prior information was obtained from the following sources:
Debit/Credit Card Fraud, refer to the              *Metavante’s Fraud Mgt Solutions by Stephanie Cook
suggestions below:                                 Metavante Fraud Management Solutions Meeting
                                                   **The Kansas Bankers Surety Company (Security
For Financial Institutions:                        Officer’s By-Word)
                                                   FTC Webpage listed below:
If fraud is committed:                             http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre04.shtm
 - Evaluate each customer individually before
     reissuing cards.
 - Contact the authorities immediately.
                                                                  Lasco Goes VoIP!!!
To prevent:
- Ask customers for cell phone numbers, if          On January 21st Lasco
   they are traveling and you notice charges       converted to it’s new Voice
   coming in from out-of-state or out of the       Over IP Telephony system
   country, a quick call to the cell phone will    (VoIP). This revolutionary
   confirm that they are in possession of their    new       system     enables
   card.                                           employees to work more
- Check the values that are sent into your         efficiently as well as
   financial institution when a charge is made     improve customer service
   (magnetic strip contains a logarithm, if        on many different levels. Utilizing Lasco’s
   values are all 0’s or similar, card should be   partner, Enterprise Systems Group, as the
   declined).                                      provider of the system, Lasco has become a
- Does your data “processor verify the correct     showcase for VoIP systems. Some of the
   expiration date before authorizing a            advantages VoIP systems provide include:
   transaction?” **                                     Unified messaging – all voice mails are
- “Does the processor verify the correct                received also in email format, allowing
   Security Code (CVV or CVC) before                    complete management of all business
   authorizing a transaction?” **                       communications in your outlook exchange
                                                        system.
For Consumers:                                          Remote connectivity – allowing employees
 - Create a list of your financial institution’s        to work from home, on the road or at client
    contact numbers (credit card company,               sites with their phone system, allowing
    bank, etc.) as well as your account and PIN         heightened customer service and fewer
    numbers. Keep this list in a separate               missed calls.
    location from your debit or credit cards. This      Collaboration with your existing network
    will enable you to report a lost card quickly.      – allowing phone activity to travel over your
 - Don’t carry more cards than you need to.             existing network communication lines as well
 - Check your monthly statements (or follow             as with any blackberry server integration you
    online) and compare with your receipts and          may have.
    report      mistakes      or     discrepancies      Web conferencing – will allow you to hold
    immediately.                                        your own web conferences on your network
 - Don’t carry your Debit Card PIN number               system.
    with you.
 - Destroy all copies of receipts or transactions
    after you have verified the transaction
    completion (personal shredders work well).
You can find more consumer protection facts on
the Federal Trade Commission’s website (listed Please call Dan Fezatt, Sr. VP of Information
in sources).                                       Technology at 800-800-6197, Ext. 1057 to arrange
                                                   a demonstration of a working VoIP system.

                                               -2-
        January 2009                                                            Lasco Newsletter

Blackberry Integration vs iPhone                       TECHIE NEWS:
                                                        -   “Cell phones that scan bar codes on
                                                            posters”, ads, or just aim at tv commercials



            VS
                                                            to get more information on products or
                                                            media. Already popular in Europe, this trend
                                                            is moving toward the US quickly. A great
                                                            way for businesses to gather information
                                                            about their target audience.
RIM has made the BlackBerry a perfect desktop           -   Data encryption is becoming more
extension. What you can do from Outlook on                  necessary with ID Theft on the rise. Plan on
your Exchange server, you can do from your                  spending more in this area especially if you
BlackBerry. In addition to looking at the device            deal with personal information, more laws
specifically, RIM’s BES server offers the now               are being passed at the State level to
standard way of managing, controlling, and                  ensure safety.
deploying devices across a corporate                    -   Waterproof cell phones are about 2 years
infrastructure. Their BES servers allow IT admins           away from being mainstream in the US.
to control and protect device settings, making          -   Microsoft’s Windows 7 software is
this is the ideal solution for mid-to-large                 expected to be optimal over Vista. Faster
businesses and government agencies. RIM’s                   boot up process, finds nearby printer
focus on security make the BlackBerry a very                automatically, batteries can run longer
secure device to use in a corporate environment.            because it uses less power, allows easier
                                                            remote access to networks, and this is just
The iPhone still has a lot to prove to corporate            the start of the list!
entities. Apple has made device deployment              -   Small businesses can expect higher
tools, but they aren’t as easy to use as RIM’s              charges and less service from American
setup. While the iPhone is secure, there are                Express as a result of cutbacks and
many corporations still wary of allowing iPhones            changes to the company as a whole.
on their infrastructure. It has things like remote      -   Currently in the U.K. but soon to come to
wipe and password enforcement, but it doesn’t               the U.S.: Cell phone companies offering
come to offering the customization abilities of             free laptops with internet service “for as
RIM’s BES servers and security.                             low as $37/month for 2 years.” Vodafone
                                                            and Dell are the current suppliers.
Really neither phone is that much better than the
other. The BlackBerry is great for business use. Source: The Kiplinger Letter Volume 85, No.’s: 42, 45,
The new to market iPhone is a consumer device 46, 48 & 50.
with countless applications. Ultimate choice will
come down to individual preference while Client Spotlight:
corporate integration should be designed around U. P. FABRICATING CO., INC
standardization of a single device to ensure
security and manageability.




If you would like to hear more about Lasco’s current
integration practices, contact Dan Fezatt, Sr. Vice
President of Information Technology, at 800-800-
6197, Ext. 1057.

                                                  -3-
        January 2009                                  Lasco Newsletter




Lasco would like to thank Enterprise Systems
Group for installing our NEW VoIP SYSTEM! A
division of Wisconsin Wireless Communications
Corporation, ESG has been in business, serving
the Midwest for over 35 years. They are
Technology/Solutions/Specialists and offer a line
of products and services for the following:
 - Phone Systems “VoIP” Voice over IP
    solutions
 - HP Data Products
 - Wireless Networks and Products
 - DVR Camera Security
 - Disaster Recovery Planning and Products
 - Network Monitoring both Reactive and
    Proactive and Quality of Service Voice
    Monitoring
ESG has the most certified, trained and
professional group of engineers, designers,
project managers and trainers in the industry.
That is just one reason why we trust and
appreciate them as a partner. Some of their
customers include: Goodwill, Island Resort &
Casino, PMI (The Resch Center), Skyline
Technologies, The Village of Menomonee Falls,
Wausau Window & Wall Systems, U.S. Oil, The
Lake Companies, Inc., Orion Energy Systems,
Genco, Bull’s Eye Credit Union, A&B Process
Systems, Evergreen Retirement Community and
HJ Martin. Lasco is proud to promote their work,
feel free to stop in and learn about the new VoIP
System and all of the benefits that come with the
new technology.
Latest News:
 - Mitel, whose products are offered by ESG,
     received 2008 Product of the Year Award
     from     Customer     Interaction   Solutions
     Magazine

Much of the above information was received from
Jake Vande Hey of Enterprise Systems Group.
 For more information on ESG and what they can do
for your business, contact Dennis VanLandschoot,
President/CEO of Lasco, at 800-800-6197 Ext. 1051.



                                                -4-
       January 2009                                                        Lasco Newsletter

Partner News:

                                                   PrimaData can handle your data! Professionals
                                                   in their field for decades, this company is ready
Metavante announced their Fourth Quarter as        for anything. They are capable of handling even
well as their Full Year Results of 2008.           the most critical or secure data you could
For yearly results:                                possibly have: both SAS-70 certified as well as
       Full year revenue of $1707.3 million, up    up to date on all security regulations such as
       by 7% over the previous year.               HIPAA. Prima Companies are able to service
       Organic growth of 6%                        almost any company in any field, they work with
       Segment operating income increased by       Financial Institutions, Insurance Providers,
       12% over the following year up to $481.8    Health Care Organizations, as well as Direct
       million.                                    Marketers.
       Segment operating margin was 28.2%, up      PrimaData is a company that takes pride in
       by 1.2% over 2007.                          helping their customers succeed. We at Lasco
       Net Income: $147.4 million                  are proud to be partnered with PrimaData, their
       Cash Net Income: $174.2 million             integrity as a company as well as the care they
       Cash provided by Operating Activities:      show every customer is exceptional. Some
       $302.5 million                              Lasco clients who currently are receiving
       Free Cash Flow: $165.0 million              PrimaData services are: Baybank, Central
                                                   Savings Bank, Gogebic Range Bank, Northern
Fourth Quarter Results:                            Michigan Bank & Trust, Old Mission Bank,
      Revenue: $433.4 million, up by 6% from       Range Bank, State Savings Bank of Manistique
      the previous year’s 4th quarter.             and Superior National Bank & Trust.
      Organic growth of 5%                         Some of the services offered include:
      Segment operating income increased by        statement printing and invoicing, direct mail
      10% over the 4th quarter in 2007 to come     campaigns, tax notices, data sorting and
      in at $121.4 million.                        extraction, client reports, inserts, newsletters,
      Segment operating margin was 28.0%, up       postage        savings,    electronic  document
      by 1.1 percentage points over previous 4th   distribution and print-on-demand. These are just
      quarter.                                     a few of Prima’s capabilities.
      Net income: $40.4 million                    For more information on how to receive services
      Cash net income: $47.4 million               from PrimaData, contact Dennis VanLandschoot
                                                   President and CEO, at 800-800-6197, extension
Other Metavante Companies Results:                 1051.
      FSG: yearly revenue of $664.6 million (up
      by 4%)
         o Q4 Revenue: $168.9 million (4%
             increase)
      PSG: yearly revenue of $1,042.7 million
      (up by 8%)
         o Q4 Revenue: $264.5 million (8%
             increase)


 Metavante Client Conference
         May 12-14
       Milwaukee, WI
                                              -5-
        January 2009                                                           Lasco Newsletter



g{x cÜxá|wxÇàËá VÉÜÇxÜ                                Employee News:
                                                      Baby Boy Baer has arrived! Please welcome
Dear Valued Client:
                                                      Kody William Baer to the team. Congratulations
I hope your New Year is off to a great start!         Bob!
I would like to express our sincere thanks for
being a friend, client and partner of Lasco. Over
the years we have striven to promote good                             Promotions
communication and good service to those we            Tim Shandonay is our new Vice President of
work with. In these tough economic times you          Information Technology. Tim works with
can trust that we will continue to hold ourselves     Lasco’s Disaster Recovery Center and the
to the highest standard. Rest assured that we         internal workings of Lasco’s clients’ technology.
will not lose sight of why we are here or how we      Tim is involved with the inner workings of
got to where we are today. We will continue to        Lasco’s major client conversions. Tim has been
focus on you and your business needs as we            with Lasco since 1998. - Photo
have in the past. During these historic times it is
more important than ever to have a strong             Robert Baer is our new Vice President of
technology partner. It has been and will continue     Bank Services. Robert works with Lasco’s
to be our priority to serve you in every way          Image and Check 21 processing system. In
possible. We will stand firmly by your side this      addition   Robert   works     with  Document
year, next year and beyond, to continuously           Imaging/Optical Storage and works in the
service your company’s needs. As always               management of statement print for clients.
please feel free to contact me anytime if you         Robert has been with Lasco since 1996. - Photo
have questions, concerns, or just want to chat.       Shay Simmons is our new Information
                                                      Technology Support Manager.               Shay
                                                      manages Lasco’s technical staff, scheduling and
Warmest Regards,                                      conversions. Shay will be supporting team
                                                      management and oversight with focus on
Dennis VanLandschoot                                  customer service solutions and processes.
President, CEO and Chairman                           Shay has been with Lasco since 2005. - Photo


Upcoming Conferences:
Metavante Client Conf: May 12-14 (Milwaukee)
Spring User Group Meeting: April

Great News!!! Gogebic Range Bank has
approved a 5 year contract renewal with
Lasco!! GRB is a valued client and we
appreciate their continued support!




                                                  -6-

				
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